Superconductor Electricity Pipelines to be Adopted for America's
First Renewable Energy Market Hub

American Superconductor to Supply Superconductor Wire and Cable
System for Tres Amigas SuperStation

Tres Amigas to Provide First Interconnection of America’s Three
Power Grids to Enable Faster Adoption of Renewable Energy and Increase
Reliability of Electric Power

AMSC Establishes Equity Position in Tres Amigas, LLC

Tres Amigas will be the first system to interconnect all three of America’s power grids (Eastern Interconnection, Western Interconnection and Texas Interconnection). The Tres Amigas SuperStation will utilize Superconductor Electricity Pipelines to enable gigawatts of electricity to be bought and sold between the three Interconnections, creating the first power market hub in the U.S. (Graphic: Business Wire)

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Tres Amigas will be the first system to interconnect all three of America’s power grids (Eastern Interconnection, Western Interconnection and Texas Interconnection). The Tres Amigas SuperStation will utilize Superconductor Electricity Pipelines to enable gigawatts of electricity to be bought and sold between the three Interconnections, creating the first power market hub in the U.S. (Graphic: Business Wire)

ALBUQUERQUE, N.M.--(BUSINESS WIRE)--American Superconductor Corporation (NASDAQ: AMSC), a global energy
technologies company, today announced that Superconductor Electricity
Pipelines have been chosen for The Tres Amigas Project, the nation’s
first renewable energy market hub. Superconductor
Electricity Pipelines comprise transmission-level direct current
(DC) superconductor power cables powered by AMSC high temperature
superconductor (HTS) wire and high-powered voltage-source AC/DC power
converters. The Tres Amigas Project, which will be announced today in
Albuquerque by New Mexico Governor Bill Richardson, focuses on uniting
America’s three power grids for the first time to enable faster adoption
of renewable energy and increase the reliability of the U.S. grid.

The three U.S. power grids – or “Interconnections” – are known as the
Eastern Interconnection, the Western Interconnection and the Texas
Interconnection (also known as the Eastern Reliability Council of Texas,
or ERCOT). Power transmission within these three power grids is
accomplished primarily utilizing alternating current (AC) power
transmission lines. Power transfer between any two of the
Interconnections, however, can only be accomplished through special
power electronic conversion stations. This is commonly achieved by first
converting AC power in one grid to DC as an intermediate power form at a
substation, then reconverting from DC back to AC before reaching the
adjacent grid. This, in effect, synchronizes power flows. While there
are several relatively small bilateral “DC Links” existing today between
two Interconnections, all three Interconnections have never been united
by one system.

The Tres Amigas renewable energy market hub will be a multi-mile,
triangular electricity pathway of Superconductor Electricity Pipelines
capable of transferring and balancing many gigawatts of renewable power
between the three Interconnections. Similar to highway rotaries used for
traffic flow control, multiple power transmission lines from each of the
Interconnections will feed power into and out of the Tres
Amigas SuperStation through multiple AC/DC converters, each
connected by DC superconductor cables. Tres Amigas, which will be a
balancing authority, will help ensure the efficient and reliable flow of
power from multiple renewable generation sources in all three power
grids to customers across a wide area of the U.S., Canada and Mexico.

Phil Harris, chief executive officer of Tres Amigas, LLC, originally
developed the concept for the Tres Amigas SuperStation. Harris was
formerly the chief executive officer of PJM Interconnection, which
serves 14 states and is the world's largest transmission balancing area
with over 240,000 megawatts under management. “To truly open up the
market for electricity generated from renewable sources of energy,” said
Harris, “we must enhance transmission in the United States. Tres Amigas
will serve as a renewable energy market hub by connecting all three of
America’s power grids to enable the transfer of green power from region
to region. The system will also add a new dimension of reliability and
security for U.S. power supplies.”

The Tres Amigas SuperStation will act as a power market hub, enabling
the buying and selling of electricity between the nation’s three
Interconnections, which is not possible today. Wind, solar, hydro and
geothermal renewable energy sources that do not currently have access to
transmission lines and/or customers will be able to tap into multiple
markets through the Tres Amigas SuperStation. For example, regions rich
in solar energy will be able to buy electricity at night, when the sun
is not shining, from regions rich in wind energy. As a merchant
transmission system, Tres Amigas will charge a fee for usage of the
power hub.

The Tres Amigas renewable energy market hub will be constructed in
Clovis, New Mexico, a location
that has easy access to all three of the nation’s power grids. New
Mexico’s State Land Office already has granted Tres Amigas, LLC the
right to lease 14,400 acres (22.5 square miles) of land in Clovis for
this system. Tres Amigas, LLC is now in the process of filing with the
Federal Energy Regulatory Commission (FERC) for a declaratory order that
transmission lines that connect to Tres Amigas from ERCOT will not come
under the jurisdiction of FERC and that Tres Amigas can be operated as a
merchant transmission entity.

AMSC’s Participation in Tres Amigas

“Tres Amigas will utilize the latest in power grid technologies,” Harris
continued. “We require gigawatt-scale underground cables and power
conversion systems that can serve as access points for each of America’s
Interconnections, making Superconductor Electricity Pipelines a logical
fit for the Tres Amigas SuperStation. The same can be said for American
Superconductor. With its power grid experience, expertise in
transmission planning, and global leadership in superconductor
technology, AMSC is well equipped to help us make the vision of Tres
Amigas a reality.”

Following the project’s approval, AMSC is expected to provide
transmission planning services, superconductor wire and the
superconductor cable system for the project. AMSC intends to partner
with some of the industry’s leading superconductor power cable and
system component companies to manufacture the cable system to AMSC’s
specification.

“This is a tremendous opportunity to help unify the United States power
grid and achieve the nation’s renewable energy goals,” said Greg Yurek,
founder and chief executive officer of American Superconductor. “The
time has come to utilize the latest technologies to not only balance
renewable energy flows to get more clean electricity to customers, but
also to increase the reliability and security of our power grids. Tres
Amigas will help achieve these important goals.”

AMSC has acquired a minority equity interest in Tres Amigas, LLC for
$1.75 million in cash and AMSC stock. AMSC will hold one of four seats
on the Board of Directors of Tres Amigas, LLC. Terry Winter, executive
vice president of power grid projects for AMSC, will be AMSC’s
representative on the Board. Winter was formerly the chief executive
officer of the California Independent System Operator (CAISO), the
transmission balancing authority for California.

Superconductor Electricity Pipelines

“For wind energy to grow significantly in the U.S., more transmission
from locations where winds are strongest to population centers will be
required,” said American Wind Energy Association Chief Executive Officer
Denise Bode. “New transmission technologies such as Superconductor
Electricity Pipelines may alleviate some of the nation’s transmission
challenges, and we are excited about the progress being made with this
promising technology.”

The concept of using superconductor cables for DC power transmission
originated with an Electric
Power Research Institute (EPRI) report completed in 1997, which drew
upon a seminal 1967 paper discussing the use of low temperature
superconductors by IBM scientists and follow-up efforts in the 1970s by
a team at New Mexico’s Los Alamos National Laboratory. However, the more
general concept of using superconductor cables for long distance, high
power transmission dates back to at least 1967.

Superconductor Electricity Pipelines combine conventional underground
pipeline construction techniques with two highly complementary electric
power technologies: DC superconductor power transmission cables and
multi-terminal (voltage-source) AC/DC power converters. The result is a
high-capacity electric transmission “pipeline” that is underground, easy
to site and access, highly efficient and controllable, offers greater
security and avoids complex cost allocation issues for interstate
transmission of power than competing technologies. To learn more about
the technology, visit http://www.amsc.com/products/applications/utilities/superconductorpipeline.html

Tres Amigas, LLC is uniting the electric grid. Utilizing the latest
advances in power grid technology, Tres Amigas is focused on providing
the first common interconnection of America’s three power grids to help
the country achieve its renewable energy goals and facilitate the
smooth, reliable and efficient transfer of green power from region to
region. Tres Amigas, LLC is a merchant transmission entity composed of
electric utility industry operational, technology and thought leaders.
More information is available at www.tresamigasllc.com.

AMSC offers an array of proprietary technologies and solutions spanning
the electric power infrastructure – from generation to delivery to end
use. The company is a leader in alternative
energy, providing proven, megawatt-scale wind turbine designs and
electrical control systems. The company also offers a host of Smart
Grid technologies for power grid operators that enhance the
reliability, efficiency and capacity of the grid, and seamlessly
integrate renewable energy sources into the power infrastructure. These
include superconductor power cable systems, grid-level surge protectors
and power electronics-based voltage stabilization systems. AMSC’s
technologies are protected by a broad and deep intellectual property
portfolio consisting of hundreds of patents and licenses worldwide. More
information is available at www.amsc.com.

American Superconductor and design, Revolutionizing the Way the World
Uses Electricity, AMSC, Powered by AMSC, D-VAR, dSVC, PowerModule,
PQ-IVR, Secure Super Grids, Windtec and SuperGEAR are trademarks or
registered trademarks of American Superconductor Corporation or its
subsidiaries. All other brand names, product names or trademarks belong
to their respective holders. The Windtec logo and design is a registered
European Union Community Trademark.

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